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China Economic Review: Fashion labels shift production from China to Cambodia to avoid US tariffs

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21 August 2018

Global fashion companies are accelerating plans to diversify their manufacturing operations away from China to Southeast Asian countries including Vietnam and Cambodia due to the threat of US tariffs on Chinese imports, Bloombergreports.

Nearly 70% of fashion industry executives say they plan to reduce the percentage of their products sourced from China over the next two years and name US trade protectionism as the largest challenge facing the industry, according to a recent study by the US Fashion Industry Association.